UK: Young & Co's Brewery, PLC to sale Ram Brewery site and the Buckhold Road site to Minerva Plc

Young & Co's Brewery, PLC said August 04 it has exchanged contracts for the unconditional sale of the Ram Brewery site and the nearby Buckhold Road offices in Wandsworth, South West London to Minerva plc for £69 mln cash, Interactive Investor learned from AFX August 04.

Young & Co received a £14 mln deposit August 04 and will receive £8.5 mln in June 2007, on completion of the sale of the Buckhold Road site; and £46.5 mln payable in January 2008, on completion of the sale of the Ram Brewery site.

The net book value of the Wandsworth sites was £11.3 mln as at April 1 2006 and there are £13.4 mln of additional assets connected with the wholesaling activities on these sites which will no longer be needed by the company.

Excluded from the sale is the Brewery Tap public house, which is located on the brewery site, in the heart of Wandsworth.

Young's has also entered into further agreements with Minerva giving it a right of first refusal, at not more than open market value, on the lease or sale of any part of the site that is to be used as a licensed property; and if suitable planning permission is received, up to 22,000 sq ft of office space on the Buckhold Road site.

The board said the disposal agreed August 04, together with the creation of Wells & Young's, will drive a step change in the company's financial performance and that the substantial amount of capital released over the next 18 months will enable significant investment in the growth opportunities open to the company.

The board is going to evaluate the appropriate capital structure for the continuing business after taking into account the extended period during which the proceeds from the disposal will be received.

This evaluation will balance, at the time the proceeds are received, the benefits of reinvestment in the business with those of returning capital to shareholders, the company said.

04 August, 2006